Saudi Fund for Development (SFD) Chief Executive Sultan Al-Marshad and Pakistani Secretary for Ministry of Economic Affairs Dr. Kazim Niaz have signed a $1.2 billion financing agreement for the import of oil derivatives.
Pakistani Prime Minister Muhammad Shehbaz Sharif and Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki witnessed the signing of the agreement.
The funding is part of Saudi Arabia’s ongoing support to Pakistan through the SFD, which has totaled around $6.7 billion for oil derivatives since 2019. The Kingdom’s support is aimed at enhancing Pakistan’s economy, addressing its economic challenges, and bolstering vital sectors.
Additionally, both parties signed a development soft loan agreement worth $41 million to finance a project that will supply drinking water to the Pakistani city of Mansehra.
The initiative will supply about 400 kilometers of pipes for water networks, benefiting over 150,000 people. It also includes the establishment of a water treatment plant with a capacity of about 21,000 cubic meters per day, contributing to the reduction of waterborne diseases and epidemics in Pakistan.
During the signing ceremony, the Pakistani prime minister and the SFD chief discussed ways to enhance cooperation between the two countries, focusing on financing vital sectors across Pakistan.
Saudi Arabia is one of Pakistan’s largest trading partners in the Middle East. Pakistan exports a variety of goods to Saudi Arabia, including textiles, rice, and chemicals, while importing oil and petroleum products from Saudi Arabia.
The two agreements reflect the SFD’s commitment to addressing developmental challenges in various developing countries and underscore the importance of international cooperation and solidarity for achieving sustainable development in beneficiary nations.
